Stacey Manufacturing Co. v. Commissioner

OPINION.

Van Fossan, Judge:

The first question is whether the pre-March 1,1913, pro rata stock distribution of common on common is properly to be included in petitioner’s equity invested capital for excess profits tax purposes in the taxable years involved under section 718 of the Internal Revenue Code of 1939, the pertinent provisions of which are set forth below.1 Specifically, the problem is whether such a distribution is to be deemed a distribution of earnings and profits within the meaning of the cited statute.

The precise question posed has previously been before this Court on two…